Jump to content
House Price Crash Forum
Sign in to follow this  
ccc

Rents Soar...

Recommended Posts

Well according to the Scotsman anyway.

Rents soar

If you look at the actual report however...

Citylets

Same level as they were in Q3 2008 - THREE full years ago.

Seems they have risen over the past year - although the overall total is 1.4% for the country as a whole. With inflation at at least 5% - this is a real drop. Quite a large one too.

All down to one simple factor. People pay rents with the money they earn - unlike when they borrow money to buy a place. If their wages are not soaring ? Then their rents cannot soar too. Pretty simple logic really.

Nice to see they still use DJ for advice. :lol:

Amazing how experts always remain experts - no matter what happens.

Share this post


Link to post
Share on other sites

Well according to the Scotsman anyway.

Rents soar

If you look at the actual report however...

Citylets

Same level as they were in Q3 2008 - THREE full years ago.

Seems they have risen over the past year - although the overall total is 1.4% for the country as a whole. With inflation at at least 5% - this is a real drop. Quite a large one too.

All down to one simple factor. People pay rents with the money they earn - unlike when they borrow money to buy a place. If their wages are not soaring ? Then their rents cannot soar too. Pretty simple logic really.

Nice to see they still use DJ for advice. :lol:

Amazing how experts always remain experts - no matter what happens.

I agree that rent increase headlines are misleading. For 1 & 2 bedders there has been an increased pressure, but this has waned recently since wages are too stretched. For larger homes rents are largely stagnant.

Share this post


Link to post
Share on other sites

The same thing is happening everywhere I think.

I moved flats in London in early 2009 because rents had fallen as much as 20%, so I took advantage to move to a nicer place.

Since then I think rents have risen back to 2007-2008 levels, but not surpassed them. It allows headline writers to talk about rising rents, but the reality is that historically they tend to remain pretty stable (in real terms my current flat is cheaper than a similar flat that I was renting 10 years ago)

Edited by rentslave

Share this post


Link to post
Share on other sites

The same thing is happening everywhere I think.

I moved flats in London in early 2009 because rents had fallen as much as 20%, so I took advantage to move to a nicer place.

Since then I think rents have risen back to 2007-2008 levels, but not surpassed them. It allows headline writers to talk about rising rents, but the reality is that historically they tend to remain pretty stable (in real terms my current flat is cheaper than a similar flat that I was renting 10 years ago)

Yep. Looks that way to me.

Share this post


Link to post
Share on other sites

Seems they have risen over the past year - although the overall total is 1.4% for the country as a whole. With inflation at at least 5% - this is a real drop. Quite a large one too.

All down to one simple factor. People pay rents with the money they earn - unlike when they borrow money to buy a place. If their wages are not soaring ? Then their rents cannot soar too. Pretty simple logic really.

Won't supply and demand also be a factor? I keep on hearing about the 'rent it out instead' brigade and I would have thought that this extra supply of rental properties would act to restrict any growth in rents.

Share this post


Link to post
Share on other sites

Won't supply and demand also be a factor? I keep on hearing about the 'rent it out instead' brigade and I would have thought that this extra supply of rental properties would act to restrict any growth in rents.

Indeed. For all the people looking to rent rather than buy - there are also those who refuse to sell at a price others can afford and rent it out instead. It is everywhere. I know numerous myself. This seems to be balancing out pretty evenly.

Overall is there really a housing shortage in most areas of Scotland ? I am not so sure. And if not - prices and rents are going nowhere. Rents for a one bed in Edinburgh are not hugely different to 10 years ago - IIRC. Anyone remember renting a one bedder in Gorgie or the likes 10 years ago and the price paid ?

Share this post


Link to post
Share on other sites

Anyone remember renting a one bedder in Gorgie or the likes 10 years ago and the price paid ?

7 years ago when I have moved to Scotland, a friend of mine paid £400pm, 1bed on Wardlaw Place. Today it would be £475.

Share this post


Link to post
Share on other sites

7 years ago when I have moved to Scotland, a friend of mine paid £400pm, 1bed on Wardlaw Place. Today it would be £475.

Cheers. Taking away the mentalness of the bubble mortgage market - I imagine house prices would have risen at pretty much the same rate.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 331 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.